Opening a franchise in the UAE

Opening a franchise in the UAE

Franchises of foreign companies in Dubai are present in almost all sectors of the economy, from catering and service to education and medicine. The annual growth in the franchising segment is more than 20%. The UAE franchise market is valued at $ 10 billion.

Franchise investments are very popular in the UAE due to the fact that more than 200 different nationalities live in the country with their own habits and desires, and each of these nationalities uses familiar services and goods advertised internationally. The presence in the country of goods whose brand is associated with quality determines the choice of consumers. For any person, the Mercedes-Benz brand name is associates with elite and high-quality car, and Philips appliances are the best in the home appliance market. On the streets of the UAE you can always meet international brands, such as McDonalds or Subway, or use the services of an Uber taxi, which can be used in almost all countries of the world .It needs only the installation of application on your mobile phone.

If you want to open a franchise in the UAE, get a few advantages over new unknown companies and brands. Among the main advantages are:

    • There is no need to invest a lot of money in advertising or marketing, as the brand is already widely known around the world;

    • You can get an individual right to distribute certain goods and services on the market;

    • Lack of income taxes in the UAE, import duties on goods;

 A franchise can be opened on the territory of the Free Economic Zone, which makes it possible to own 100% of shares of a foreign company. A franchise agreement is registered with the Court of Dubai or any other Emirate. The protection of intellectual property in trademarks and logos, as well as the rights of the parties, is regulated by Federal Law No. 18 (1981), known as the “The Federal Agency Law”.

If you decide to open a franchise, you need to:

    • Explore laws and competitive franchises in the region;

    • Decide on the type of franchise activity, research the procedure of licensing activities;

    • Prepare a business plan for the implementation of the project;

    • Sign a franchise agreement;

    • Prepare all necessary documents, register them in a court;

    • Open a company in the UAE, get all the necessary licenses.